Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories. Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk. To choose: The action of the auditor if the control risk is high.

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Answer 1

Question

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

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Answer 2

Question

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

Expert Solution & Answer

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Answer 3

Question

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

Expert Solution & Answer

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Answer 4

Question

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

Expert Solution & Answer

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Answer 5

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

Answer 6

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

Answer 7

Chapter 14, Problem 14.13MCQ

To determine

Concept Introduction:

Inventory is the most valuable asset for a company. The company applies controls over inventory for its safeguard and detection of inventory frauds. The auditor also tests these controls to determine the nature and extent of the audit procedures applied for audit of inventories.

Audit risk is a risk that audit may provide an inappropriate opinion on the basis of his findings during the audit. There are some inherent risks and avoidable risk which result in an audit risk.

To choose: The action of the auditor if the control risk is high.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 14 - Prob. 14.1RQ Ch. 14 - Prob. 14.2RQ Ch. 14 - Prob. 14.3RQ Ch. 14 - Prob. 14.4RQ Ch. 14 - Prob. 14.5RQ Ch. 14 - Prob. 14.6RQ Ch. 14 - Prob. 14.7RQ Ch. 14 - Prob. 14.8RQ Ch. 14 - Prob. 14.9RQ Ch. 14 - Prob. 14.10RQ

Solution Summary: The author explains that the company applies controls over inventory for its safeguard and detection of inventory frauds. There are inherent risks and avoidable risk which result in an audit risk.

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Chapter 14 Solutions